An ANZ survey found most New Zealanders have lofty goals for their retirement - they want to own their own home, drive recent model cars and travel overseas.
More than a quarter plan to do house renovations in retirement and 41% expect they will buy new appliances. The same number said they had no intention to work past 65.
ANZ general manager funds and insurance Ana-Marie Lockyer said the survey found that 75% of people intended to fund their retirement through KiwiSaver.
“It’s great that so many New Zealanders have put their faith in KiwiSaver but it’s important this isn’t blind faith,” she said.
“The reality is that it costs a lot of money to cover daily expenses, run a car and maintain a home. For example, it costs about $4700 a year to run a car and $7000 a year to cover home repairs and maintenance.”
According to ANZ’s Retirement Savings Barometer most New Zealanders (54%) want their savings to generate more than $300 a week on top of national super.
“You’d need to save around $370,000 to allow you to withdraw $300 a week during retirement,” she said. That was based on a 25-year retirement.
“Many New Zealanders will fall well short of that based on current KiwiSaver balances and contribution rates.”
A 30-year-old with $10,000 in their KiwiSaver account today, earning $50,000 and contributing 3% of their salary, matched by their employer, would have around $190,000 saved by the time they’re 65.
A 45-year-old with $10,000 in their KiwiSaver account today, earning $50,000 and contributing 3% of their salary, matched by their employer, would have around $90,000 saved by the time they’re 65.
“While this is sobering information, you can take steps to make sure you save enough for your retirement,” she said. “The first step is to take a bit of a reality check on whether you’re contributing enough to meet your goals.”
Lockyer said KiwiSaver members could be directed to check out online calculators as a first step to work out what they were on the path to achieve.
| « KiwiSaver increasingly seen as retirement income option | Defensive funds regain ground » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved